Chennai Petroleum Corporation Intrinsic Value

CHENNPETRO • Petroleum Products
Current Stock Price
₹816.80
Primary Intrinsic Value
₹2318.40
Market Cap
₹121.7K Cr
+51.4% Upside
Median Value
₹1236.48
Value Range
₹441 - ₹2318
Assessment
Trading Below Calculated Value
Safety Margin
33.9%

CHENNPETRO Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹2318.40 ₹1854.72 - ₹2782.08 +183.8% EPS: ₹193.20, Sector P/E: 12x
Book Value Method asset ₹440.64 ₹396.58 - ₹484.70 -46.1% Book Value/Share: ₹550.81, P/B: 0.8x
Revenue Multiple Method revenue ₹1633.60 ₹1470.24 - ₹1796.96 +100.0% Revenue/Share: ₹4389.26, P/S: 0.5x
EBITDA Multiple Method earnings ₹1215.93 ₹1094.34 - ₹1337.52 +48.9% EBITDA: ₹4672.00Cr, EV/EBITDA: 4x
Simple DCF (5Y) dcf ₹1232.53 ₹986.02 - ₹1479.04 +50.9% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹1236.48 ₹1112.83 - ₹1360.13 +51.4% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹1591.97 ₹1432.77 - ₹1751.17 +94.9% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹1633.60 ₹1470.24 - ₹1796.96 +100.0% ROE: 35.0%, P/E Multiple: 16x
Graham Defensive Method conservative ₹1101.61 ₹991.45 - ₹1211.77 +34.9% EPS: ₹193.20, BVPS: ₹550.81
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

CHENNPETRO Intrinsic Value Analysis

What is the intrinsic value of CHENNPETRO?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Chennai Petroleum Corporation (CHENNPETRO) is ₹1236.48 (median value). With the current market price of ₹816.80, this represents a +51.4% variance from our estimated fair value.

The valuation range spans from ₹440.64 to ₹2318.40, indicating ₹440.64 - ₹2318.40.

Is CHENNPETRO undervalued or overvalued?

Based on our multi-method analysis, Chennai Petroleum Corporation (CHENNPETRO) appears to be trading below calculated value by approximately 51.4%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 5.86 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 2.08 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 35.0% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 7.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 3.83x Industry Standard: 1.0x+ Above 1.0x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹1,352 Cr ₹1,027 Cr Positive Free Cash Flow 8/10
March 2024 ₹2,694 Cr ₹2,400 Cr Positive Free Cash Flow 8/10
March 2023 ₹5,749 Cr ₹5,548 Cr Positive Free Cash Flow 8/10
March 2022 ₹1,026 Cr ₹688 Cr Positive Free Cash Flow 8/10
March 2021 ₹452 Cr ₹178 Cr Positive Free Cash Flow 7/10